Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Suppliers of Auto Parts Must Obey Multiple Regulations

14-Nov-2017
Suppliers of Auto Parts Must Obey Multiple Regulations
Manufacturing high-quality automotive components is challenging enough on its own. Then, distributing those components to automakers and after-market vendors around the world adds yet another set of complications. To ensure the global supply chain remains above-board, regulators around the world have joined together to issue a series of essential labeling and disclosure rules.

The Automotive Industry Action Group is among the organizations setting the standards. Auto parts manufacturers unable to meet AIAG barcode standards will be unable to become part of the bustling industry, meaning that getting in compliance is an unavoidable part of entering the component market.

Global Regulations Standardized
The international market for auto industry supplies is governed by the Global Transport Label Standard, bringing together some of the most prominent rules and information-sharing formats to make sure parts get where they're going. This includes electronic data interchange formats and the AIAG's B-10 label format.

The B-10 methodology is a widely used format for barcodes that allow trading partners to scan shipping containers and immediately learn about the contents. Companies unable to correctly and consistently implement this AIAG label methodology may find their orders being rejected, leading to potential revenue loss.

Closer Connections Ahead
According to research from McKinsey, the years ahead will see close alliances form between auto manufacturers and their top suppliers, with progress coming from the development and introduction of new and more advanced parts. Whether in these vertically integrated networks or serving a variety of industry customers, data interchange will be essential. As design specifications evolve, suppliers will have to add new parts to their offerings, calling for constant updates to databases and accurate barcode labels to match.

The Right Backend Processes
Without an effective automotive barcode solution in place, suppliers may find they're having trouble keeping their label production consistent and compliant. Failure in those areas isn't an option, as regulatory fines or buyers rejecting shipments can be burdensome on a company. This makes effective automotive barcode software a must-have in the auto space.

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